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Wednesday, November 19, 2014

Mortgage Bond Market Analysis - hooray for building permits edition

Happy humpday morning to you!!  After today, we'll be on the down side to the weekend so that's our consolation prize to a crappy morning for the bond market.  The housing starts numbers were good for the bond market, relatively speaking, since they were a miss with the actual at 1009 vs. expectations of 1025 and previous of 1038.  What's punching us in the gut this morning is the building permit number which came in at 1080 vs. expectations of 1040 and previous of 1031.  The future is looking up - as far as building is concerned and that's good for our industry since it means people are buying homes (resale as well) but when the economy improves, rates go up.

As I write this, the benchmark bond has improved a little bit vs. what you'll see on the chart; it is currently only down 15 basis points which means it is up 16 basis points off the low and is now 9 basis points above the first level of support.  Here's the chart:

Finally, here is an article from the DS News about where Freddie Mac's economists see housing and interest rates heading in 2015 based on their estimations for the broader economy:  Analysts predict continued improvement for housing.

Please feel free to share your thoughts as well as share the article with your friends and associates.  I'm available to help with anything mortgage related - 702-812-1214.  Make today great.

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